Taxes
Whatever your source of income, you can calculate the taxes and contributions you will owe and compare the options to find the best one for you.
How much would you really earn by moving back to Italy?
Enter your gross annual salary (RAL), turn on the inbound workers regime (impatriati) and see your real net straight away: the calculation is free and asks for no email.
Is the returning workers scheme worthwhile? It depends on the numbers
If you live abroad and are weighing up an offer in Italy, the real question isn't "how big is the RAL" but "how much do I keep in my pocket". With the inbound workers regime (impatriati) the answer changes considerably: from 2024, 50% of employment income is exempt from personal income tax (IRPEF) (60% if you have a minor child), up to 600,000 euros a year. On a gross salary of 60,000 euros we're talking about around 11,500 euros more net every year compared with ordinary taxation.
The trouble is that almost no simulator applies the relief in the calculation. TaxDemocracy does: it has a dedicated field for the inbound workers regime, so you see the net with and without the benefit side by side and can compare it with what you earn abroad today. No registration, no quote to request.
How to calculate your net salary as a returning worker
- 1
Enter the RAL of the Italian offer
All you need is your gross annual salary and a few contract details: region, salary instalments, any dependent children.
- 2
Turn on the inbound workers regime
Select the relief in the dedicated field. The tool reduces the IRPEF taxable base by 50% (or 60% with a minor child) and also recalculates the surtaxes.
- 3
Compare the net with and without the relief
You see the monthly and annual net in the two scenarios, with a breakdown of IRPEF, social security contributions (INPS) and surtaxes. So you know exactly what moving back is worth.
What you can do with Tax Democracy
The new inbound workers regime from 2024: how it really works
For those who transfer their tax residence to Italy from 2024 onwards, the regime introduced by Legislative Decree 209/2023 applies: employment income, assimilated income and self-employment income produced in Italy count towards personal income tax (IRPEF) for only 50%, within a cap of 600,000 euros a year. The exemption rises to 60% if you move with a minor child, or if a child is born (or adopted) during the relief period.
Let's take a concrete example on a RAL of 60,000 euros as an employee. The social security contributions (INPS) (around 5,500 euros) are paid in full; the relief doesn't touch those. Without the regime, a taxable base of around 54,500 euros generates IRPEF of around 15,600 euros plus surtaxes: the net stops at around 37,800 euros a year. With the 50% regime the IRPEF taxable base falls to around 27,200 euros, the tax drops below 4,500 euros and the net rises to around 49,300 euros. The difference is around 11,500 euros a year, almost 1,000 euros a month. The exact numbers depend on region, municipality and tax credits: that's why it's best to run them on your own case with the tool.
A note for anyone who looked into this before 2024: the old 70% regime (90% in the South) no longer exists for new arrivals. The current percentages are less generous, but the saving is still considerable.
Requirements, duration and what happens if you leave early
The requirements of the new regime are stricter than the previous ones. You must:
- not have been a tax resident in Italy in the 3 tax periods before the transfer. The period rises to 6 or 7 years if in Italy you'll work for the same employer (or the same group) you worked for abroad;
- commit to keeping your tax residence in Italy for at least 4 years;
- carry out your work activity predominantly in Italy during the year;
- hold requirements of high qualification or specialisation (in practice: a degree, or relevant professional experience under the criteria of the EU directives transposed in Italy).
The relief lasts 5 tax periods. Only those who transferred their registered residence in 2024 and bought a main home in Italy within certain time limits are entitled to 3 extra years.
Watch the residence constraint: if you move your residence abroad again before 4 years, you forfeit the benefit and the Revenue Agency recovers all the tax saved, with interest. It's no token fine: on a RAL of 60,000 euros it can be over 30,000 euros to repay after three years. It has to be factored in before accepting the offer, not after.
Did you move back before 2024? Or are you a lecturer or researcher?
Anyone who transferred their residence by 2023 stays in the old regime (art. 16 Legislative Decree 147/2015) until its natural expiry: an exemption of 70%, which becomes 90% for those who settled in a region of the South. In certain cases (a minor child, or the purchase of a residential property) the benefit extends for another 5 years, at 50% exemption, or 90% with at least three minor children. If you're in this situation, in the tool you can set your percentage and see the correct net.
A separate matter for university lecturers and researchers: a separate regime applies to them (art. 44 Decree-Law 78/2010), which stayed in force even after the reform, with a 90% exemption of income. It lasts 6 years and can reach up to 13 where there are children or a property bought in Italy. The requirements are different: a university qualification, two years of research or teaching activity abroad and no high-specialisation constraint.
Frequently asked questions
How much do I really save with the inbound workers regime on a RAL of 60,000 euros?
Around 11,500 euros net a year. Without the relief the net comes to about 37,800 euros, with the 50% regime it rises to around 49,300. With a minor child (60% exemption) the advantage grows further. The social security contributions (INPS), by contrast, stay in full, because the exemption concerns IRPEF only. For the precise number on your case, with your region and your tax credits, calculate your net as a returning worker.
Can I use the inbound workers regime while working remotely for a foreign employer?
Yes, on one condition: you must physically work from Italy for most of the tax year. The employer's location doesn't matter, what matters is where you carry out the activity. Watch one detail, though: if you stay with the same employer (or group) you worked for abroad, the minimum period required outside Italy rises from 3 to 6 years, which becomes 7 if that relationship had begun after a previous period in Italy.
What happens if I move back abroad before 4 years?
You forfeit the regime and have to repay all the tax saved up to that point, with interest. The constraint concerns tax residence, not the individual contract: you can change jobs in Italy without a problem, but if you move your residence abroad before the fourth year the Revenue Agency recovers the entire benefit. On medium-to-high salaries we're easily talking about tens of thousands of euros.
Does the inbound workers regime also apply to the self-employed and freelance professionals?
Yes. The new regime covers employment income, assimilated income and self-employment income from arts and professions, always within the 600,000-euro-a-year cap. Business income is excluded. One caveat: the inbound workers regime can't be combined with the flat-rate scheme, so anyone opening a VAT number (partita IVA) must choose the standard scheme to apply the 50% exemption.
What's the difference between the old and the new inbound workers regime?
The old regime, valid for those who returned by 2023, exempts 70% of income (90% in the South) and provides neither the 600,000-euro cap nor the high-qualification requirement. The new one, in force from 2024, exempts 50% (60% with a minor child), requires a degree or specialisation and imposes 4 years of residence, on pain of repaying the benefit. Anyone already in the old regime keeps it until expiry, including any extensions.